Wales must not be denied the multi-billion pound opportunity to bid to make the Army’s new generation of armoured vehicles, politicians across the political divide have warned.

They want General Dynamics, which has major operations in Merthyr Tydfil and Oakdale, to be able to bid for the contract to build the new Mechanised Infantry Vehicles (MIV).

It is understood that up to 800 MIVs could be ordered but there is widespread alarm at claims the contract could be awarded to a German manufacturer without a competitive bidding process.

Welsh Government Economy and Transport Secretary Ken Skates said: “It would be outrageous if the UK Government created a situation where businesses based in Wales were excluded from even pitching for what would be a very lucrative and prestigious deal.”

The MIVs would replace the Scimitar armoured cars and be at the heart of new strike brigades the Ministry of Defence wants to have up and running by 2025.

According to the Strategic Defence and Security Review, the new brigades would be able to “deploy rapidly over long distances” and form part of a “war-fighting division optimised for high intensity combat operations”.

It has been reported that if the “Boxer” is bought from Germany each would cost at least £4m.

General Dynamics is behind the Army's new Ajax Armoured Fighting Vehicle

Assembly Members from different parties have written to the Prime Minister, warning that the lack of a competitive bidding process would put jobs at risk and erode “the case for future inward investment by companies in the UK”.

Llanelli Labour MP and Shadow Defence Secretary Nia Griffith said: “It will be extremely disappointing if the Government does not allow UK based companies to bid on the contracts for the Mechanised Infantry Vehicles. It would be complete hypocrisy from the Government who have said repeatedly they favour competition in defence procurement.

“A contract of this scale could provide a significant boost to local employment opportunities and the economy. It would be a betrayal of UK defence workers for the Government to gift this contract without a bidding process”.

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Merthyr Tydfil and Rhymney Labour AM Dawn Bowden said: “Let us hope there is no truth in the suggestion that the MoD could buy the Boxer vehicle from Germany without the chance of any competition from UK firms. We know there are firms in Wales that could build these vehicles, including General Dynamics.

“It would be a disgrace if this work went to other countries without any process of competition... More young people could be trained in places like Merthyr College to help provide the expanded workforce such a contract would require.”

A British Army soldier using the Bowman communications system developed by General Dynamics

David Davies, the Monmouth Conservative MP who chairs the Welsh Affairs select committee, said he had met with General Dynamics to discuss the issue.

He said: “It’s obvious to me that we should enable General Dynamics to bid for any contracts that are out there. We should be mindful of the fact that the Germans are desperately trying to prevent us from leaving the European Union; I don’t see any moral obligation to give them a contract that’s worth billions of pounds to buy their MIVs.”

Steffan Lewis, Plaid Cymru AM for the South East, said: “Given the increased manufacturing capacity in Wales and the jobs this would secure, I want to see Welsh industry given a proper chance to compete.”

A Welsh Conservative spokesman said Montgomeryshire AM Russell George had lobbied the MoD on the issue, adding: “This is a multibillion pound contract which will support thousands of jobs and the government should do everything possible to ensure those jobs stay in Britain.”

The MoD states: “No decision has been taken at this stage and our approach remains to encourage open competition wherever possible.”

A UK Government spokeswoman said Welsh Secretary Alun Cairns had been “in regular discussions with the Ministry of Defence over recent months”.